Reinvestment risk

Reinvestment risk on bonds
Usually, when the yield of a bond is calculated, you assume that the coupons received before maturity are reinvested.

Reinvestment risk is one of the main genres of financial risk. The term describes the risk that a particular investment might be canceled or stopped somehow, ...

Reinvestment risk is risk from uncertainty in the interest rate at which future cash flows may be invested.

reinvestment risk
uncertainty about investment opportunity rates that may prevail at some future date. In lending, it is the risk that a bank will be unable to reinvest interest-earning assets at current market rates.

Reinvestment Risk
The risk that future proceeds will have to be reinvested at a lower potential interest rate.

Reinvestment Risk - The risk that interest rates will decrease as investments or bond coupons come due.
Repair - A process a bank performs to adjust a payment instruction to ensure correct and automated processing.

Reinvestment Risk
The prospect that securities will not be able to pay higher rates of interest when general interest rates rise or retain previous levels of interest when general interest rates fall.
Renounceable Documents ...

reinvestment risk
The risk of a decline in earnings or capital resulting from the fact the interest and/or principal cash flows received by investors during the time that an investment is held must be reinvested at a lower than expected rate as a ...

Reinvestment risk
The risk that proceeds received in the future may have to be reinvested at a lower potential interest rate.
Relative value ...

REINVESTMENT RISK " The risk that an investor in bonds who chooses to spend the interest, or is unable to reinvest the coupon payments, will not receive the calculated yield to maturity.

Reinvestment risk
Reinvestment risk occurs when you have money from a maturing fixed-income investment, such as a certificate of deposit (CD) or a bond, and want to make a new investment of the same type.

Reinvestment risk
The risk that interest income or principal repayments will have to be reinvested at lower rates in a declining rate environment.
REMIC (Real Estate Mortgage Investment Conduit) ...

Reinvestment risk
The risk that proceeds received in the future may have to be reinvested at a lower potential interest rate.

Reinvestment Risk
The risk that interest rates will fall causing the cash flows on an investment, assuming that the cash flows are reinvested, to earn less than the original investment.

Reinvestment Risk - Is the situation whereby prepaid principal amounts will be reinvested in lower yielding securities.
REIT - See Real Estate Investment Trust.

Reinvestment risk
When you use the money from a maturing fixed-income investment, such as a certificate of deposit (CD) or a bond, in order to make a new investment of the same type, ...

Reinvestment Risk
The interest rate risk faced by an FI that the returns on invested funds to be re-priced will fall below the cost of funds because of market interest rates falling.
Representation and Warranty ...

Call riskThe combination of cash flow uncertainty and reinvestment risk introduced by a call provision. Call swaptionA swaption in which the buyer has the right to enter into a swap as a fixed-rate payer.

reinvestment risk The risk resulting from the fact that interest or dividends earned from an investment... REIT "Acronym for Real Estate Investment Trust. A corporation or trust that uses...

REINVESTMENT RISK See interest rate risk. REIT See Real Estate Investment Trust. RENEWAL COMMISSIONS The commission payments made to insurance agents that are based on the premium payments made after the policy's first year.

holder of any debt is subject to interest rate risk and credit risk, inflationary risk, currency risk, duration risk, convexity risk, repayment of principal risk, streaming income risk, liquidity risk, default risk, maturity risk, reinvestment risk, ...

The combination of cash flow uncertainty and reinvestment risk introduced by a call provision.
Callable
A financial security such as a bond with a call option attached to it, i.e., the issuer has the right to
call the security.

A call feature of a Collateralized Mortgage Obligation (CMO) designed primarily to reduce the issuer's reinvestment risk.

It involves interest rate risk but not reinvestment risk. If held by an individual outside of a tax-sheltered account, these bonds create taxable income each year even though no interest payments are made.

The shortness of the term, which significantly reduces reinvestment risk.
The backing of the U.S. government, which virtually eliminates default, or credit risk ...

The rate at which an investor assumes interest payments made on a debt security can be reinvested over the life of that security.
Reinvestment risk ...

some participants to shift to maturities showing the opposite imbalances. However, such investors will need to be compensated by an appropriate risk premium whose magnitude will reflect the extent of aversion to either price or reinvestment risk.

range, some participants will shift to maturities showing the opposite imbalances. As long as such investors are compensated by an appropriate risk premium whose magnitude will reflect the extent of aversion to either price or reinvestment risk.

See also: Investment risk, Expense, Expected return, Risk premium, Banks